Lanka Century Group invests Rs. 354 m in textile biz
Tuesday, 22 July 2014 00:48
-
- {{hitsCtrl.values.hits}}
Lanka Century Group has invested Rs. 354 million to further boost its profitable textile business.
The bulk of the investment is via Lanka Century Group subsidiary Ceylon Leather Products Plc.
It has invested Rs. 306 million by subscribing to a recent rights issue of the unlisted South Asia Textile Industries Lanka Ltd., thereby increasing the stake to 80.4%.
The number of shares subscribed was 3.06 billion at Rs. 10 each. Lanka Century Investments has subscribed Rs. 48 million shares
In addition Lanka Century Investments, the controlling shareholder of Ceylon Leather had subscribed 480.7 million shares in the textile entity for Rs. 48 million, thereby increasing its holding by 12.6%.
The collective stake of Ceylon Leather and Lanka Century is now 93% in South Asia Textiles Industries Lanka Ltd. Previously the two firms held a 51.55% stake.
The Group’s manufacturing textile business in FY14 reported revenues of Rs. 4.84 billion, up from Rs. 3.8 billion in the previous year. Pre-tax profit was Rs. 147.2 million though down from Rs. 162.6 million a year earlier.
